2014 Q2 Form 10-Q Financial Statement

#000119312514285190 Filed on July 30, 2014

View on sec.gov

Income Statement

Concept 2014 Q2 2013 Q2 2012 Q4
Revenue $1.765B $2.018B $2.503B
YoY Change -12.54% -10.31% -9.48%
Cost Of Revenue $1.060B $1.695B $1.131B
YoY Change -37.46% 69.16% 10.34%
Gross Profit $378.0M -$97.00M $1.017B
YoY Change -489.69% -110.07% -28.53%
Gross Profit Margin 21.42% -4.81% 40.63%
Selling, General & Admin $69.00M $72.00M $97.00M
YoY Change -4.17% -1.37% -11.82%
% of Gross Profit 18.25% 9.54%
Research & Development $42.00M $46.00M $137.0M
YoY Change -8.7% -43.9% -38.01%
% of Gross Profit 11.11% 13.47%
Depreciation & Amortization $306.0M $415.0M $281.0M
YoY Change -26.27% 67.34% 8.08%
% of Gross Profit 80.95% 27.63%
Operating Expenses $42.00M $46.00M $577.0M
YoY Change -8.7% -43.9% -12.58%
Operating Profit $336.0M -$143.0M $440.0M
YoY Change -334.97% -116.23% -42.33%
Interest Expense -$94.00M -$70.00M -$42.00M
YoY Change 34.29% -198.59% -2.33%
% of Operating Profit -27.98% -9.55%
Other Income/Expense, Net -$91.00M -$20.00M $55.00M
YoY Change 355.0% -42.86% -885.71%
Pretax Income $92.00M -$2.631B $804.0M
YoY Change -103.5% -572.35% -176.86%
Income Tax -$53.00M -$287.0M $123.0M
% Of Pretax Income -57.61% 15.3%
Net Earnings $180.0M -$2.059B $666.0M
YoY Change -108.74% -835.36% -164.79%
Net Earnings / Revenue 10.2% -102.03% 26.61%
Basic Earnings Per Share $0.36 -$4.14 $1.34
Diluted Earnings Per Share $0.36 -$4.14 $1.34
COMMON SHARES
Basic Shares Outstanding 499.0M 497.0M 497.0M shares
Diluted Shares Outstanding 499.0M 497.0M 499.0M shares

Balance Sheet

Concept 2014 Q2 2013 Q2 2012 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.737B $1.876B $1.647B
YoY Change -7.41% -7.54% -11.17%
Cash & Equivalents $1.653B $1.248B $1.561B
Short-Term Investments $84.00M $628.0M $86.00M
Other Short-Term Assets $1.246B $1.267B $1.661B
YoY Change -1.66% 71.68% 46.6%
Inventory $863.0M $1.333B $796.0M
Prepaid Expenses
Receivables $147.0M $257.0M $283.0M
Other Receivables $299.0M $289.0M $577.0M
Total Short-Term Assets $5.354B $5.022B $5.945B
YoY Change 6.61% -4.74% 10.34%
LONG-TERM ASSETS
Property, Plant & Equipment $14.04B $16.24B $18.01B
YoY Change -13.55% -4.09% 13.41%
Goodwill $132.0M $132.0M $188.0M
YoY Change 0.0% -29.79% 0.0%
Intangibles $114.0M $104.0M $136.0M
YoY Change 9.62% -26.76% -7.48%
Long-Term Investments $347.0M $485.0M $1.446B
YoY Change -28.45% -59.07% -1.77%
Other Assets $848.0M $4.275B $872.0M
YoY Change -80.16% 326.65% 1.75%
Total Long-Term Assets $19.62B $21.45B $23.63B
YoY Change -8.54% -8.27% 14.4%
TOTAL ASSETS
Total Short-Term Assets $5.354B $5.022B $5.945B
Total Long-Term Assets $19.62B $21.45B $23.63B
Total Assets $24.98B $26.48B $29.57B
YoY Change -5.67% -7.62% 13.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $435.0M $551.0M $657.0M
YoY Change -21.05% -4.01% 17.11%
Accrued Expenses $135.0M $169.0M $336.0M
YoY Change -20.12% -26.84% 45.45%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $112.0M $48.00M $10.00M
YoY Change 133.33% 20.0% -98.55%
Total Short-Term Liabilities $2.252B $2.198B $3.141B
YoY Change 2.46% -7.14% -20.28%
LONG-TERM LIABILITIES
Long-Term Debt $6.673B $6.726B $6.288B
YoY Change -0.79% 10.48% 73.51%
Other Long-Term Liabilities $354.0M $439.0M $372.0M
YoY Change -19.36% 8.93% 2.2%
Total Long-Term Liabilities $7.027B $7.165B $6.660B
YoY Change -1.93% 10.38% 67.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.252B $2.198B $3.141B
Total Long-Term Liabilities $7.027B $7.165B $6.660B
Total Liabilities $11.89B $12.24B $12.70B
YoY Change -2.88% -3.42% 22.84%
SHAREHOLDERS EQUITY
Retained Earnings $1.039B $2.077B $3.992B
YoY Change -49.98% -40.21% 30.8%
Common Stock $798.0M $789.0M $787.0M
YoY Change 1.14% 0.38% 0.38%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares 277.0K shares
Shareholders Equity $10.23B $11.23B $13.70B
YoY Change
Total Liabilities & Shareholders Equity $24.98B $26.48B $29.57B
YoY Change -5.67% -7.62% 13.26%

Cashflow Statement

Concept 2014 Q2 2013 Q2 2012 Q4
OPERATING ACTIVITIES
Net Income $180.0M -$2.059B $666.0M
YoY Change -108.74% -835.36% -164.79%
Depreciation, Depletion And Amortization $306.0M $415.0M $281.0M
YoY Change -26.27% 67.34% 8.08%
Cash From Operating Activities $375.0M $288.0M $842.0M
YoY Change 30.21% -17.0% -8.68%
INVESTING ACTIVITIES
Capital Expenditures -$254.0M -$610.0M -$816.0M
YoY Change -58.36% -30.84% -18.89%
Acquisitions
YoY Change
Other Investing Activities $4.000M $12.00M $3.000M
YoY Change -66.67% -47.83% -109.09%
Cash From Investing Activities -$250.0M -$598.0M -$813.0M
YoY Change -58.19% -30.38% -21.75%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 53.00M 192.0M -20.00M
YoY Change -72.4% -196.0% -92.48%
NET CHANGE
Cash From Operating Activities 375.0M 288.0M 842.0M
Cash From Investing Activities -250.0M -598.0M -813.0M
Cash From Financing Activities 53.00M 192.0M -20.00M
Net Change In Cash 178.0M -118.0M 9.000M
YoY Change -250.85% -83.43% -102.35%
FREE CASH FLOW
Cash From Operating Activities $375.0M $288.0M $842.0M
Capital Expenditures -$254.0M -$610.0M -$816.0M
Free Cash Flow $629.0M $898.0M $1.658B
YoY Change -29.96% -26.93% -14.0%

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<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b>Recently Issued Accounting Pronouncements</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt"> <b><i>Stock based compensation</i></b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> In June 2014, ASU guidance was issued to resolve the diversity of practice relating to the accounting for stock based performance awards that the performance target could be achieved after the employee completes the required service period. The update is effective prospectively or retrospectively beginning January&#xA0;1, 2015. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 18pt"> <b><i>Revenue Recognition</i></b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> In May 2014, ASU guidance was issued related to revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December&#xA0;15, 2016, including interim periods and is to be retrospectively applied. Early adoption is not permitted.&#xA0;The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.</p> </div>
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<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> <b>Risks and Uncertainties</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> As a global mining company, our revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on our financial position, results of operations, cash flows, access to capital and on the quantities of reserves that we can economically produce. The carrying value of our Property, plant and mine development assets, inventories, stockpiles and ore on leach pads, and deferred tax assets are particularly sensitive to the outlook for commodity prices and the resolution of the export issue in Indonesia discussed below. An unfavorable resolution to the Indonesian export issue (as described below) or a decline in our long term price outlook from current levels could result in material impairment charges related to these assets.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> We are currently subject to an export ban at our Batu Hijau copper mine in Indonesia. In early 2014, the Indonesian government issued new regulations that impose new export conditions, an export duty and a January 2017 ban on the export of copper concentrate, all of which violate the Contract of Work signed by the Government of Indonesia and PT Newmont Nusa Tenggara (&#x201C;PTNNT&#x201D;) and the bilateral investment treaty between Indonesia and the Netherlands. While the 2009 mining law preserves the validity of PTNNT&#x2019;s Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies), the Indonesian government has stated its intention to enforce the new regulations on PTNNT&#x2019;s operations and has not yet recognized PTNNT&#x2019;s rights to export copper concentrate and only pay the taxes, duties, and levies specified in the Contract of Work. The Company believes that these new 2014 regulations conflict with the Contract of Work. Although PTNNT is continuing to engage with government officials in Indonesia in an effort to resolve this issue and gain clarity on implementation of the new regulations, while also considering other remedies, including possible legal action, the Company can make no assurances that the new regulations will not continue to impact operations or outlook for these operations for an extended period. In June 2014, the Company invoked the force majeure clause in its Contract of Work due to these export issues and placed the Batu Hijau operations on care and maintenance. In July 2014, the Company filed international arbitration against the Government of Indonesia.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> As a result of placing the Batu Hijau copper mine on care and maintenance, we have evaluated, and will continue to evaluate, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting changes due to the status of the mine.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.</p> </div>
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CY2014Q2 us-gaap Income Tax Reconciliation Nondeductible Expense Depletion
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CY2014Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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CY2014Q2 us-gaap Share Based Compensation
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CY2014Q2 us-gaap Depreciation And Amortization
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CY2014Q2 us-gaap Exploration Expense Mining
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CY2014Q2 us-gaap Income Tax Reconciliation State And Local Income Taxes
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CY2014Q2 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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CY2014Q2 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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CY2014Q2 us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
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CY2014Q2 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2014Q2 us-gaap Research And Development Expense
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CY2014Q2 us-gaap Other General Expense
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CY2014Q2 us-gaap Asset Impairment Charges
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CY2014Q2 us-gaap Mineral Extraction Processing And Marketing Costs
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CY2014Q2 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
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CY2014Q2 us-gaap Environmental Remediation Expense
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CY2014Q2 us-gaap Asset Retirement Obligation Accretion Expense
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CY2014Q2 us-gaap Income Tax Reconciliation Other Adjustments
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CY2014Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CY2014Q2 nem Other Nonoperating Income Expense Net
OtherNonoperatingIncomeExpenseNet
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CY2014Q2 nem Advance Projects And Exploration Expense
AdvanceProjectsAndExplorationExpense
83000000
CY2014Q2 nem Community Development
CommunityDevelopment
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CY2014Q2 nem Gain Loss On Hedge Instruments Gross Of Tax
GainLossOnHedgeInstrumentsGrossOfTax
19000000
CY2014Q2 nem Pension Liability Adjustments Gross Of Tax
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-4000000
CY2014Q2 nem Power Plant Costs Net
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CY2014Q2 nem Reconciliation Foreign Earnings Net Of Credits
ReconciliationForeignEarningsNetOfCredits
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CY2014Q2 nem Refinery Income
RefineryIncome
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CY2014Q2 nem Unrealized Gain On Marketable Securities Gross Of Tax
UnrealizedGainOnMarketableSecuritiesGrossOfTax
1000000

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